Blog

I have moved my blog to House Hunter Sacramento this is where you will find all the latest news and information regarding Sacramento Real Estate.

I will continue to update here, but less frequently.

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Carmichael Short Sale Follow Up

I’ve moved my site. I will continue to post here, but less regularly.

I hope you will follow my new site. And for my regular followers I will continue to be blogging.

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News of the Day 2/14

Here are some stories I found interesting:

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February 2011 FHA rates

That is what someone on the interwebs typed into Yahoo! and came to my blog here.

I am #7 on Yahoo for that phrase and if you put Sacramento on the end I am #1!!!!!

That is very strange, but anyways thank you new reader.

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FHA Rates change

FHA premiums look to be rising…. again!

Affordability takes another hit. This can’t be good for people looking to buy with 3.5% down. If you have thought about buying recently, I highly recommend buying before April 1, 2011. If you were to get in to contract before March 1, we can close and save you a lot of money. From a lender in San Diego, meaning these costs will vary for Sacramento, Placer and El Dorado County, but you get the point:

What does that mean to the average FHA borrower, taking out a $300,000 loan in San Diego County?

  • Six months ago, the FHA mortgage insurance premium would have been $125.00.
  • As of October 1, 2010(and currently), that FHA monthly premium would be $225.00
  • After April 1, 2011, expect that FHA monthly insurance premium to be $287.50.

These costs are not an upfront cost, but a monthly cost you will have to pay to an escrow account. This is not a good thing for buyers looking to buy with FHA (3.5% down payment).

Posted in Buyer, Real Estate, Sacramento | 2 Comments

News of the Day 2/11

Things I found interesting in the last couple of days:

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Which Cities Are The Most Generous?

I found this (Which Cities Are The Most Generous?) interesting. For sure not the most scientific way of determining generosity, but a good use of easily accessible information.

These are the types of random things I would do if I were good at math and not at a 7th grade level.

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1st Poll

Whatever is decided I will get my wife for Valentine’s Day. Much like my friend Cory did with his choice of doctors. I figure if Cory can make life changing medical attention on a blog, I can have my reader’s decide my Valentine’s gift. 

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News for Today 2/8

Things I found interesting today:

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Follow up to Rent vs Buy

As a follow up to my previous blog post, I just finished my taxes for the tax year 2010. It led me to think about the tax break we get for owning a home. Not to mention this article I was sent from the National Association of Realtors. I will give you some details of why the tax break may not be that great of a deal for everyone.

The home we live in is owned by my wife (Kim) and my brother (Evan). Kim and I, as a married couple, receive a standard deduction of $11,400. We purchased our home in July of 2009 for $177,000 with an FHA loan, our total loan amount ended up being around $173,000. We made all the payments in 2009 and 2010. We had an interest rate of 5.75% through these two years (we have since refinanced down to 4.25%).

The point of me telling you all of this is that for 2010 we paid approximately $9,900 in interest which is deductible for our income tax. However, as a married couple our deduction is already $11,400. So this deduction does us no good, my brother on the other hand as a half owner can claim all of the mortgage interest as a tax write off. So his standard deduction is $5,700, so with the interest on our home of $9,900. This knocks his income down $9,900, he then also gets to claim his exemption of $3,650. Thus his taxable income will  be $13,500 less then his adjusted gross income.

I do not know how much my brother makes, but I will use a nice round number to demonstrate how this deduction works for him.

Let’s say his income is $30,000

With the interest deduction of $9,900 and exemption of $3,650, leaving him a TAXABLE INCOME of $16,450. This leaves his tax to be paid at $2,045.

Now without the interest deduction, we’ll use the standard deduction. Standard deduction of $5,700 and exemption of $3,650 is $9,350. Take that number from the adjusted gross income leaves his TAXABLE INCOME of $20,650. That makes his tax $2,675.

This is a difference of $640 that a single person who owns a home and makes $30,000 a year can save by owning a home. While this is not a whole lot of money, it works out to about $50 a month. Not to mention as the article above points out, when selling a home that is used as a primary residence a single person can profit $250,000 or a married couple can profit $500,000 with out any tax consequences.

I do not claim to be a tax expert, so please consult a tax expert before filing taxes based on the information provided here. (I certainly hope this does not need to be said, but figured I’d throw it out there.)

If you have any questions regarding buying a home or some of the tax benefits feel free to contact me.

Posted in Buyer, Real Estate, Tips | 3 Comments